[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR30.602-3]

[Page 563]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 30_COST ACCOUNTING STANDARDS ADMINISTRATION--Table of Contents
 
                     Subpart 30.6_CAS Administration
 
Sec.  30.602-3  Voluntary changes.

    (a) General. (1) The contractor may voluntarily change its disclosed 
or established cost accounting practices.
    (2) The contract price may be adjusted for voluntary changes. 
However, increased costs resulting from a voluntary change may be 
allowed only if the ACO determines that the change is desirable and not 
detrimental to the interest of the Government.
    (b) Accounting changes. (1) The clause at FAR 52.230-6, 
Administration of Cost Accounting Standards, requires the contractor to 
notify the ACO and submit a description of any voluntary cost accounting 
practice change not less than 60 days (or such other date as may be 
mutually agreed to) before implementation of the voluntary change.
    (2) The ACO, with the assistance of the cognizant auditor, shall 
review the proposed change concurrently for adequacy and compliance (see 
30.202-7). If the description of the change meets both tests, the ACO 
shall notify the contractor and request submission of a cost impact 
proposal in accordance with FAR 30.602.
    (c) Contract price adjustments. (1) With the assistance of the 
auditor, the ACO shall promptly analyze the cost impact proposal to 
determine whether or not the proposed change will result in increased 
costs being paid by the Government. The ACO shall consider all of the 
contractor's affected CAS-covered contracts and subcontracts, but any 
cost changes to higher-tier subcontracts or contracts of other 
contractors over and above the cost of the subcontract adjustment shall 
not be considered.
    (2) The ACO shall then follow the procedures in 30.602-1(c)(1).
    (d) Remedies for contractor failure to make required submissions. 
(1) If the contractor does not submit the accounting change description 
or the general dollar magnitude of the change or cost impact proposal 
(in the form and manner specified), the ACO, with the assistance of the 
cognizant auditor, shall estimate the general dollar magnitude of the 
cost impact on CAS-covered contracts and subcontracts. The ACO may then 
withhold an amount not to exceed 10 percent of each subsequent amount 
determined payable related to the contractor's CAS-covered prime 
contracts up to the estimated general dollar magnitude of the cost 
impact, until the required submission is furnished by the contractor.
    (2) If the contractor has not submitted the cost impact proposal 
before the total withheld amount reaches the estimated general dollar 
magnitude and the ACO determines that an adjustment is appropriate (see 
30.602), the ACO shall request the contractor to agree to the cost or 
price adjustment. The contractor shall also be advised that, in the 
event no agreement on the cost or price adjustment is reached within 20 
days, the ACO may make a unilateral adjustment subject to contractor 
appeal, as provided in the clause at 52.233-1, Disputes.

[57 FR 39587, Aug. 31, 1992, as amended at 59 FR 67043, Dec. 28, 1994; 
61 FR 18918, Apr. 29, 1996]